Wednesday, May 22, 2024

Hotels Must Stay In Touch With Evolving Guest Needs

The US-based hotel owner/operator Tishman has a track record for developing and managing premier large-scale hospitality assets in major markets.

Some of the Tishman portfolio includes three Walt Disney World resorts, The Westin New York at Times Square, and Hilton Garden Inn Lake Buena Vista. In total, the company’s hotels total 7,172 keys, 38 restaurants, and 861,000 square feet of meeting space.

Its most recent addition, The Delta Hotels Orlando at Celebration, is currently undergoing a $35 million renovation. Work on the 718-room property, located just 1.5 miles from Walt Disney World, is expected to complete early this year.

Tishman Hotel Corporation is the asset management arm of the firm, providing management services for Tishman’s hotel portfolio as well as for select third-party clients.

As an owner/operator, financial performance and asset value are top priorities. To ensure that all assets perform at their maximum output, Tishman Hotel Corporation focuses on:

  • Revenue management strategies
  • Financial analysis
  • Cash flow management
  • Marketing initiatives
  • Operational support

The corporation’s revenue management expertise also supports Tishman Realty in its development and real estate ventures, including space planning to maximize future revenue streams and minimize related expenses. The team analyzes market trends and sub-market segmentation to understand the optimal room product, hotel positioning, and most efficient method to deliver maximum ROI.

We caught up with Suzanne Swafford, SVP of Revenue Management, Tishman Hotel Corporation, to find out what she thinks are the challenges and trends to look out for in 2023.

Embrace Change

Changing guest expectations, staffing shortages, and the industry’s reluctance to change were just three challenges Swafford believes the hotel industry should consider as they plan.

“Hotels have always been slow to change, but today’s consumer is looking for unique and individual experiences. Hotels must stay in touch with evolving guest needs and be ready to move quickly as those dynamics change,” Swafford advised.

“In addition, the scarcity of qualified individuals, and companies not embracing flexible work opportunities, has left some hotels with lackluster talent in many departments,” she added.

Continued Tech Investment

Despite plenty of industry analysts talking of recession, Swafford believes that tech investment must stay on the agenda.

“I imagine some of the tech spending will slow in anticipation of a recession, however, I believe automation that will streamline efficiencies and costs will continue to be robust,” she said.

For Tishman Hotel Corporation, automating many of the processes in revenue management, such as pricing and restrictions, is a top priority for 2023.

However, Swafford believes more needs to be done to encourage the digitalization of the industry, including providing platforms that easily convert the data into usable information for operators.

Focus on Total Revenue and Profitability

Looking ahead to what she believes will be the most important trends in revenue management in 2023, Swafford believes hotels need to push forward with a focus on technology and profitability.

“Continuing the incorporation of forward-looking, real-time data for both the hotel and competitive set for strategy development and continuing the momentum towards driving TrevPAR and ProfPAR instead of just a RevPAR focus,” were her two major trends.

Data is central to the Tishman Hotel Corp revenue strategy for the year ahead. And while the markets are still uncertain, Swafford said it is difficult to identify what will be the optimal strategies in terms of pricing, distribution, and managing costs.

“For convention hotels and cities, group is and will always be the focus; city center hotels are looking for business travel recovery, while destinations will continue to rely on group with a mix of leisure. OTAs will continue to be a consistent generator for all transient types of business and leaned on as a resource to drive volume in the lower demand days of the week and times of the year,” she said.

“I think we’re still in recovery mode in the sense that we don’t quite understand how the trends will eventually level off. Until then, I don’t believe channel cost will be as much of a factor as volume and pricing,” she added.

This post originally appeared on the Duetto website and is reproduced with their permission.

Hotel Speak
Hotel Speak
Hotel Speak provides actionable hotel marketing and revenue management strategies from hospitality industry experts.

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